Mumbai — The Reserve Bank of India (RBI) has introduced a significant measure to expedite the cheque clearance process through the implementation of Continuous Clearing under the Cheque Truncation System (CTS). This new approach aims to ensure that cheques are cleared within hours of submission, replacing the current timeline of up to two days.
Currently, CTS operates with a batch processing cycle of two working days, which can delay fund settlements and affect customer experience. To enhance efficiency, reduce settlement risks for banking participants, and improve customer services, RBI Governor Shaktikanta Das announced on Thursday (August 8) that the system will transition from batch processing to continuous clearing with ‘on-realisation-settlement.’
This move is part of RBI’s broader efforts to modernize and streamline payment systems, ensuring faster and more reliable banking transactions across the country. The implementation of continuous clearing is expected to significantly benefit customers, businesses, and banking institutions alike.
